IDEAS home Printed from https://ideas.repec.org/a/taf/tjorxx/v71y2020i3p505-516.html
   My bibliography  Save this article

Cross-efficiency evaluation capable of dealing with negative data: A directional distance function based approach

Author

Listed:
  • Ruiyue Lin

Abstract

Cross-efficiency evaluation is a commonly used technique for ranking decision making units (DMUs) in data envelopment analysis while it is just applicable to the non-negative data set. Based on the range directional measure (RDM), we explore the duality relation regarding the maximum slacks formulation of RDM and define cross-efficiencies on the basis of the equivalences with some fractional programming problems. The newly defined cross-efficiency evaluation is under the variable returns to scale condition. It can handle negative values in inputs and outputs well and the resulting cross-efficiencies as well as cross-efficiency scores are between 0 and 1 for all DMUs. It provides self- and peer-evaluations of DMUs by measuring the inefficiency in both inputs and outputs simultaneously. In addition, we propose a corresponding model that implements the benevolent criterion to select weights. A numerical example demonstrates the validity and effectiveness of the proposed cross-efficiency evaluation in dealing with negative data.

Suggested Citation

  • Ruiyue Lin, 2020. "Cross-efficiency evaluation capable of dealing with negative data: A directional distance function based approach," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 71(3), pages 505-516, March.
    • Handle: RePEc:taf:tjorxx:v:71:y:2020:i:3:p:505-516
    DOI: 10.1080/01605682.2019.1567652
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01605682.2019.1567652
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01605682.2019.1567652?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Radojko LUKIC, 2022. "Measurement and Analysis of the Dynamics of Financial Performance and Efficiency of Trade in Serbia Based on the DEA Super-Radial Model," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(5), pages 630-645, December.
    2. Borrás, Fernando & Ruiz, José L. & Sirvent, Inmaculada, 2023. "Peer evaluation through cross-efficiency based on reference sets," Omega, Elsevier, vol. 114(C).
    3. Liu, Yong-Jun & Yang, Guo-Sen & Zhang, Wei-Guo, 2024. "A novel regret-rejoice cross-efficiency approach for energy stock portfolio optimization," Omega, Elsevier, vol. 126(C).
    4. Radojko LUKIC, 2024. "Economic Performance of the Economy of Kosovo and Metohija," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 120-137, February.
    5. Lin, Ruiyue & Peng, Yudan, 2024. "A new cross-efficiency meta-frontier analysis method with good ability to identify technology gaps," European Journal of Operational Research, Elsevier, vol. 314(2), pages 735-746.
    6. Sweksha Srivastava & Abha Aggarwal & Pooja Bansal, 2024. "Efficiency Evaluation of Assets and Optimal Portfolio Generation by Cross Efficiency and Cumulative Prospect Theory," Computational Economics, Springer;Society for Computational Economics, vol. 63(1), pages 129-158, January.
    7. Feng Li & Han Wu & Qingyuan Zhu & Liang Liang & Gang Kou, 2021. "Data envelopment analysis cross efficiency evaluation with reciprocal behaviors," Annals of Operations Research, Springer, vol. 302(1), pages 173-210, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tjorxx:v:71:y:2020:i:3:p:505-516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tjor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.